What is an FBAR?
FBAR 2018 : FBAR stands for Foreign Bank Account Reports. FBAR is also known as FinCEN 114. The FinCEN (Financial Crimes Enforcement Network) is a bureau for United States Department of the Treasury that collects all information about financial transaction to control the criminal network and money laundering and other financial crimes. Generally, IRS requires US citizens to require all offshore accounts. In this article you will get all information about FBAR instructions, who can file FBAR, FBAR reporting requirements and how to file FBAR.
Who Can File FBAR?
The FBAR can file by every US citizens, whether the person live in US or foreign country. If the taxpayer has one or more financial accounts that exceed $10,000 during the tax year, then taxpayer should file FBAR.
FBAR Filing Deadline:
The deadline for filing FBAR will April 15 every year. But if any taxpayer misses their FBAR files on current year and looking extension for FBAR filing. The FBAR filing is automatically extended to October 16 every year
How to file FBAR?
If taxpayer wants to file FBAR Online, filed through electronically through FinCEN’s website BSA E-Filing System or taxpayer can contact tax consultant or tax preparation services for FBAR online filing. The taxpayers can file the FBAR jointly or separately. Most of the filer file their FBAR separately.
If taxpayer fail to file FBAR or filing FBAR with incorrect details. Then taxpayer can be penalized up to $10,000 per violation. Even if taxpayer knows about FBAR filing and fail to file FBAR or filing the FBAR without accuracy. Taxpayer gets penalized up to $100,000 per violation or even higher penalty. It depends on taxpayer financial account balance on current tax year.